Market Overview - U.S. stocks traded higher with the Dow Jones index gaining more than 50 points, up 0.12% to 46,644.20, NASDAQ rose 0.14% to 22,772.87, and S&P 500 increased by 0.21% to 6,712.54 [1] - Energy shares saw a significant increase of 1.6%, while consumer discretionary stocks fell by 0.6% [1] Company Performance - Tesla Inc. reported third-quarter revenue of $28.095 billion, a 12% year-over-year increase, surpassing the consensus estimate of $26.239 billion. However, earnings per share were 50 cents, missing the consensus estimate of 54 cents [2] Commodity Market - Oil prices increased by 4.8% to $61.30, gold rose by 2.2% to $4,156.40, silver was up 2.7% to $48.985, and copper increased by 2% to $5.0960 [4] European Market - European shares were mostly higher, with the eurozone's STOXX 600 rising 0.4%, Spain's IBEX 35 Index up 0.5%, London's FTSE 100 increasing by 0.8%, while Germany's DAX 40 fell by 0.1% and France's CAC 40 rose by 0.6% [5] Asian Market - Asian markets closed mixed, with Japan's Nikkei 225 down 1.35%, Hong Kong's Hang Seng index up 0.72%, China's Shanghai Composite gaining 0.22%, and India's BSE Sensex increasing by 0.15% [6] Notable Stock Movements - Ventyx Biosciences Inc. shares surged 87% to $7.22 following positive Phase 2 study results. Scienture Holdings Inc. shares increased by 66% to $0.95 after announcing the start of commercial sales. American Rebel Holdings Inc. shares rose by 45% to $3.11 [8] - Conversely, AiRWA Inc. shares dropped 45% to $0.10 after announcing a 1-for-50 reverse split, and Everbright Digital Holding Ltd. shares fell 45% to $0.59 [8]

Core Insights - Dow Inc. reported a profit of $62 million or 8 cents per share for Q3 2025, a decline from $214 million or 30 cents per share a year ago, primarily due to lower prices [1] - On an adjusted basis, Dow recorded a loss of 19 cents per share, compared to earnings of 47 cents a year ago, which was better than the Zacks Consensus Estimate of a loss of 31 cents [1][10] - Net sales for the quarter were $9,973 million, down 8% year over year, missing the Zacks Consensus Estimate of $10,175.4 million [2] Financial Performance - Cash flow from operating activities increased to $1.1 billion, up $330 million from the same period last year, attributed to working capital improvements [7] - Shareholder returns for the quarter totaled $249 million in dividends [7] - DOW's shares have decreased by 57.4% over the past year, compared to a 30.9% decline in the Zacks Chemicals Diversified industry [11] Segment Performance - **Packaging & Specialty Plastics**: Sales fell 11% year over year to $4,891 million, missing estimates, with local prices down 10% [4] - **Industrial Intermediates & Infrastructure**: Sales decreased 4% year over year to $2,834 million, beating estimates, with local prices down 8% [5] - **Performance Materials & Coatings**: Revenues fell 6% year over year to $2,082 million, slightly above estimates, with local prices down 5% [6] Market Outlook - Dow aims to maintain financial flexibility and enhance competitiveness to boost earnings, while focusing on cost savings and disciplined cash flow management [8] - The company is on track to generate over $6.5 billion in near-term cash support, having already achieved more than half of this target [9]

Financial Data and Key Metrics Changes - In Q3, the company reported net sales of $10 billion, with EBITDA at $868 million, reflecting a sequential improvement despite being lower than the same period last year [5][6][7] - Cash provided by operating activities increased by $1.6 billion sequentially, driven by working capital improvements and advanced payments for low-carbon solutions [7][16] Business Line Data and Key Metrics Changes - The packaging and specialty plastics segment saw net sales decline year-over-year and sequentially, with operating EBIT at $199 million, primarily due to lower integrated margins [11][12] - The industrial intermediates and infrastructure segment experienced a 4% year-over-year decline in net sales but saw a sequential increase due to volume gains and lower planned maintenance activity [12][13] - Performance materials and coatings segment net sales were $2.1 billion, down 6% year-over-year and 2% sequentially, with operating EBIT decreasing due to upstream margin compression [14] Market Data and Key Metrics Changes - Global demand in the packaging market remains steady, with North America experiencing record domestic and export volumes, while Europe contracted [18][19] - The infrastructure sector faces soft market conditions across the U.S., Europe, and China, with mortgage rates in the U.S. remaining above 6% [18][19] Company Strategy and Development Direction - The company is focused on restoring core earnings and positioning for profitable growth, with over $6.5 billion in strategic actions and cash support planned [32][33] - The company is committed to being a low-cost producer, with over 75% of its global cracking capacity in a top-quartile cost position, expected to increase to approximately 80% [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious operating environment with subdued business investment and consumer spending due to economic uncertainty, but anticipates potential positive influences from recent monetary policy shifts [18][21] - For Q4, the company expects EBITDA to be approximately $725 million, with anticipated headwinds from higher feedstock costs and normal seasonality impacting performance [21][22] Other Important Information - The company has completed significant strategic actions, including a $3 billion partnership for U.S. Gulf Coast infrastructure assets and a $1.4 billion bond issuance for financial flexibility [8][16] - The company is on track to deliver approximately $400 million in targeted cost savings this year, contributing to improved performance [9][10] Q&A Session Summary Question: Reconciliation of Q3 results - Management highlighted higher integrated margins and better-than-expected volume as key factors for exceeding expectations in Q3 [37][39] Question: Rationalization and project cancellations - Management provided insights on global capacity rationalization, particularly in ethylene supply, and noted potential delays in announced capacity in China due to market conditions [44][46] Question: Polyethylene demand - Polyethylene demand has remained stable, with strong performance in packaging and personal care segments, and expectations for continued stability [62][63] Question: Demand function and order books - October order books appear positive, with management maintaining a balanced outlook for Q4 sales and EBITDA guidance [73][75]

Financial Data and Key Metrics Changes - In Q3, the company reported net sales of $10 billion, with EBITDA at $868 million, reflecting a sequential improvement despite being lower than the same period last year [5][6]. - Cash provided by operating activities increased by $1.6 billion sequentially, driven by working capital improvements and advanced payments for low-carbon solutions [7]. Business Line Data and Key Metrics Changes - **Packaging and Specialty Plastics**: Net sales decreased year-over-year and sequentially, with a 1% volume decrease year-over-year and a 2% sequential decline. Operating EBIT was $199 million, down from the previous year due to lower integrated margins [11]. - **Industrial Intermediates and Infrastructure**: Net sales were down 4% year-over-year but increased sequentially, with a 2% volume increase year-over-year and a 5% sequential increase. Operating EBIT increased significantly due to higher volumes and lower fixed costs [12][13]. - **Performance Materials and Coatings**: Net sales were $2.1 billion, down 6% year-over-year and 2% sequentially, with operating EBIT decreasing due to upstream margin compression [14]. Market Data and Key Metrics Changes - The broader macroeconomic landscape remains largely unchanged, with subdued business investment and consumer spending impacting demand across key markets [18]. - In the packaging market, global demand remains steady, with North America experiencing record domestic and export volumes, while Europe contracted [18][19]. Company Strategy and Development Direction - The company is focused on restoring core earnings and positioning for profitable growth, with over $6.5 billion in strategic actions and cash support planned [32]. - The company is committed to being a low-cost producer, with over 75% of its global cracking capacity in a top-quartile cost position, expected to increase to approximately 80% [30]. Management's Comments on Operating Environment and Future Outlook - Management noted that the prolonged down cycle continues to weigh on the industry, but there are encouraging signs of rationalization in global capacities that will benefit the company [26]. - The outlook for Q4 anticipates EBITDA of approximately $725 million, with expectations of margin compression from feedstock costs and normal seasonality impacting performance [21][22]. Other Important Information - The company has completed significant strategic actions, including a $3 billion partnership with Macquarie and a $1.4 billion bond issuance to enhance financial flexibility [8][17]. - The company is on track to deliver approximately $400 million in targeted cost savings this year, with a total goal of $1 billion by the end of 2026 [9][10]. Q&A Session Summary Question: Reconciliation of Q3 results - Management highlighted that higher integrated margins and better-than-expected volume contributed to exceeding original estimates, along with accelerated cost savings [36][38]. Question: Rationalization and project cancellations in China - Management provided insights on global capacity rationalization, noting potential delays in announced capacities in China due to market conditions [43][45]. Question: Polyethylene demand and joint venturing Alberta cracker - Polyethylene demand has been stable, with expectations for continued strength in packaging. Management indicated that joint venturing for the Alberta cracker remains a consideration but is not currently planned [61][65]. Question: MDI margins and construction market recovery - Management noted that while MDI margins are benefiting from reduced imports due to anti-dumping measures, a recovery in the construction market is contingent on further reductions in mortgage rates [69][70]. Question: Demand function and order books for Q4 - Management indicated that October order books look good, with a cautious but optimistic outlook for Q4 sales and EBITDA guidance [72][74].

Financial Data and Key Metrics Changes - In Q3 2025, the company reported net sales of $10 billion, with EBITDA at $868 million, reflecting a sequential improvement despite being lower than the same period last year [4][5] - Cash provided by operating activities increased by $1.6 billion sequentially, driven by working capital improvements and advanced payments for low-carbon solutions [5][14] - The company delivered $249 million in dividends, demonstrating a commitment to competitive shareholder returns [5] Business Line Data and Key Metrics Changes - **Packaging and Specialty Plastics**: Net sales decreased year-over-year and sequentially, with a 1% volume decrease year-over-year and a 2% sequential decline. Operating EBIT was $199 million, down from the previous year due to lower integrated margins [9][10] - **Industrial Intermediates and Infrastructure**: Net sales were down 4% year-over-year but increased sequentially, with a 2% volume increase year-over-year and a 5% sequential increase. Operating EBIT increased significantly due to higher volumes and lower fixed costs [10][11] - **Performance Materials and Coatings**: Net sales were $2.1 billion, down 6% year-over-year and 2% sequentially, with operating EBIT decreasing due to upstream margin compression [12] Market Data and Key Metrics Changes - The broader macroeconomic landscape remains largely unchanged, with subdued business investment and consumer spending impacting demand across key markets [16] - In the packaging market, global demand remains steady, with North America experiencing record domestic and export volumes, while Europe contracted [16][17] - The infrastructure sector shows soft market conditions across the U.S., Europe, and China, with mortgage rates remaining high and limiting demand [17] Company Strategy and Development Direction - The company is focused on restoring core earnings and positioning for profitable growth, with over $6.5 billion in strategic actions and cash support items planned [30] - The company is committed to being a low-cost producer, with over 75% of its global cracking capacity in a top-quartile cost position, expected to increase to 80% after the shutdown of the Bohlen cracker [27][28] - The company is actively engaged in discussions with governments to mitigate the impact of anti-competitive behaviors and ensure a fair trade environment [25][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the prolonged down cycle continues to weigh on the industry, but there are encouraging actions to address oversupply, particularly in ethylene and propylene oxide capacities [24] - The company anticipates Q4 EBITDA to be approximately $725 million, with expectations of margin compression from feedstock costs and normal seasonality impacting performance [18][19] - Management remains optimistic about the potential for recovery in 2026, contingent on improved economic conditions and consumer confidence [17][51] Other Important Information - The company has completed significant strategic actions, including a $3 billion partnership for U.S. Gulf Coast infrastructure assets and a $1.4 billion bond issuance for financial flexibility [6][14] - The company is on track to deliver approximately $400 million in targeted cost savings this year, with a total goal of $1 billion by the end of 2026 [7][30] Q&A Session Summary Question: Reconciliation of Q3 results - Management highlighted that higher integrated margins and better-than-expected volume contributed to exceeding original guidance, along with accelerated cost reduction efforts [34][36] Question: Rationalization and project cancellations - Management provided insights on global capacity rationalization, particularly in ethylene, and noted potential delays in announced capacities in China due to market conditions [40][42] Question: Polyethylene demand - Polyethylene demand has remained stable, with strong performance in packaging and personal care segments, and expectations for continued stability [56][58] Question: CapEx outlook for 2026 - Management indicated a potential range of $2.5 billion for CapEx next year, with a focus on maintenance and strategic projects depending on market conditions [53][54] Question: MDI margins and construction market - Management noted that while MDI margins are benefiting from reduced imports due to tariffs, further reductions in mortgage rates are needed for a recovery in the construction market [64][66] Question: Demand function and order books - October order books appear strong, with management maintaining a balanced outlook for Q4 sales and EBITDA guidance [68][70]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported net sales of $10 billion, reflecting sequential improvement despite industry pressures [6] - EBITDA was $868 million, lower than the same period last year but improved over Q2 [6] - Cash provided by operating activities increased by $1.6 billion sequentially, driven by working capital improvements [7] Business Line Data and Key Metrics Changes - **Packaging and Specialty Plastics**: Net sales decreased year-over-year and sequentially due to lower downstream polymer prices and olefins volumes [13][15] - **Industrial Intermediates and Infrastructure**: Net sales were down 4% year-over-year but increased sequentially due to volume gains and lower planned maintenance activity [16][17] - **Performance Materials and Coatings**: Net sales were $2.1 billion, down 6% year-over-year and 2% sequentially, impacted by pricing pressures [18] Market Data and Key Metrics Changes - Global demand in the packaging market remains steady, with North America showing record domestic and export volumes [25] - The infrastructure sector faces soft market conditions across the U.S., Europe, and China, with limited affordability affecting demand [26] Company Strategy and Development Direction - The company is focused on restoring core earnings and positioning for profitable growth during industry recovery [6][43] - Strategic actions include cost reduction initiatives targeting $1 billion in savings by 2026 and a reduction in capital expenditures [11][43] - The company is rationalizing its asset footprint to enhance competitiveness and reduce exposure to high-cost operations [36][41] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious operating environment with subdued business investment and consumer spending due to economic uncertainty [24] - The outlook for Q4 anticipates EBITDA of approximately $725 million, with expectations of margin compression from higher feedstock costs [29][30] Other Important Information - The company completed a $3 billion strategic partnership and issued $1.4 billion in bonds to enhance financial flexibility [10][21] - The company is actively engaged in discussions with governments to mitigate impacts from anti-competitive behaviors and ensure fair trade [38][44] Q&A Session Summary Question: Reconciliation of Q3 results - Management highlighted higher integrated margins and improved cost reduction efforts as key factors for exceeding expectations [50][52] Question: Industry rationalization and project cancellations - Management provided insights on global capacity rationalization, particularly in Asia and Europe, and noted potential delays in announced capacities in China [56][59] Question: Polyethylene demand and pricing - Polyethylene demand has remained stable, with strong performance in packaging applications despite weaker consumer sentiment [77] Question: CapEx outlook for 2026 - Management indicated potential CapEx of $2.5 billion for 2026, with a focus on maintenance and strategic projects [73] Question: MDI margins and construction market recovery - Management noted that MDI margins are benefiting from reduced imports due to anti-dumping measures, while the construction market requires further interest rate declines for recovery [87]

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Core Insights - Dow Inc. reported a quarterly loss of $0.19 per share, better than the Zacks Consensus Estimate of a loss of $0.31, but down from earnings of $0.47 per share a year ago, indicating an earnings surprise of +38.71% [1] - The company posted revenues of $9.97 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.99% and down from $10.88 billion year-over-year [2] - Dow Inc. shares have declined approximately 45.9% year-to-date, contrasting with the S&P 500's gain of 13.9% [3] Earnings Outlook - The future performance of Dow Inc. will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.44 on revenues of $10.04 billion, and for the current fiscal year, it is -$1.00 on revenues of $40.75 billion [7] Industry Context - The Chemical - Diversified industry, to which Dow Inc. belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that Dow Inc.'s stock may underperform in the near future [5][6]

3Q 2025 Results October 23, 2025 Agenda ▪ 3Q25 Highlights ▪ Operating Segment Performance ▪ Actions to Provide Greater Financial Flexibility and Improved Profitability ▪ Outlook ▪ Industry Opportunities Non-GAAP measures are defined in the appendix 3Q 2025 Highlights Delivered Solid Results, Cost Savings Actions, and Near-Term Cash Support 3 $10.0B Net Sales $868MM Operating EBITDA $249MM Returned to Shareholders ▪ Operating EBITDA was $868MM, up $165MM QoQ ▪ Total CapEx for the quarter was $564MM ▪ Cash Fl ...

Dow shares rose in premarket trading as improved volumes in the industrial unit helped reduce its loss from the previous quarter more than analysts expected https://t.co/jPRm3G5dNy ...